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"This is yet another example of a rogue Oversight Board that continues to violate sections of PROMESA, which in this case clearly deemed the RSA a Preexisting Voluntary Agreement outside the scope of Oversight Board renegotiation."

On June 27, 2017, after nearly three years and millions of dollars spent
by creditors and the Commonwealth (approximately $80 million by Puerto
Rico) on a consensual PREPA RSA that was approved by two Puerto Rico
governors, the Puerto Rico Legislature, and the Puerto Rico Energy
Commission, the PROMESA Oversight Board failed to perform its
ministerial duty of certifying the RSA for Title VI execution.

Commenting on the RSA rejection, Dominic Frederico, President and CEO of
Assured Guaranty said, “This is yet another example of a rogue Oversight
Board that continues to violate sections of PROMESA, which in this case
clearly deemed the RSA a Preexisting Voluntary Agreement outside the
scope of Oversight Board renegotiation.”

As outlined in the June 15, 2017 letter to the Oversight Board from U.S.
Congressman Rob Bishop, Chairman of the Natural Resources Committee,
which drafted and sponsored the PROMESA legislation, the PREPA RSA
qualified as a Preexisting Voluntary Agreement under Section
601(g)(2)(b), thereby obviating any substantive action or approval by
the Oversight Board.

After the Oversight Board participated in the extraction of further
concessions from creditors by the Rosello administration earlier this
year, the Board’s turnabout and current rejection of the RSA effectively
engineers a probable Title III bankruptcy at the utility, putting Puerto
Rico’s energy consumers at risk of higher costs and long-term
litigation. The Oversight Board’s actions will have negative
consequences for years to come for PREPA with regard to its ability to
access the capital markets, to purchase fuel at reasonable rates, and to
modernize the current system so that it could provide efficient energy
to PREPA customers.

“The clear intent of PROMESA was to restore fiscal responsibility,
credibility, and access to capital markets, while arriving at consensual
resolutions wherever possible and providing a safe harbor for this lone
existing deal. This rejection of the PREPA RSA makes clear that the
Oversight Board is not seriously seeking the consensual resolutions with
creditors that PROMESA was intended to encourage. The rejection of this
consensual agreement will force PREPA into years of litigation, costing
millions of dollars and driving up costs for customers,” said Mr.
Frederico.

“Over the last three years,” he continued, “the PREPA creditors, through
the RSA and prior forbearance agreements, have already provided more
than $1.2 billion in liquidity, and the RSA was set to provide further
refinancing and deferrals for an additional $2.2 billion in debt service
relief, as well as $850 million in debt reduction and a drop in the
necessary rates charged to consumers. The RSA would have provided room
for capital improvements and operational reform, giving PREPA
significant breathing room to modernize its facilities and stabilize its
finances.”

Fuel prices have declined significantly over the last three years,
dropping PREPA’s rates from 28.8 cents/kWh to a low of 16.6 cents/kWh,
allowing PREPA to pass along over $2 billion in fuel cost savings to its
customers. Rather than attempt to reduce rates consensually to the
extent possible, and restore credibility and fiscal responsibility while
honoring the contractual obligations it can, the Oversight Board is
aggressively attempting instead to renege on as many obligations in
Puerto Rico as it can.

Assured Guaranty will vigorously exercise its rights and remedies as
guarantor of PREPA Special Revenue bonds, which benefit from special
protections under bankruptcy law.

Payments to holders of PREPA bonds insured by Assured Guaranty will
continue to be paid without interruption for the life of the bonds.
Assured Guaranty unconditionally and irrevocably guarantees full and
timely payment of scheduled debt service, in accordance with the terms
of Assured Guaranty's insurance policies and, upon payment, takes over
the rights of the insured bondholders. With $12 billion in claims-paying
resources* across its group of companies, which includes an $11 billion
investment portfolio that alone generates approximately $400 million of
annual investment income, Assured Guaranty's liquidity and capital
position are very strong.

*Aggregate data for operating subsidiaries within the Assured Guaranty
Ltd. group. Claims on each subsidiary’s insurance policies / financial
guarantees are paid from that subsidiary’s separate claims-paying
resources. Details of the components of claims-paying resources are set
forth in the most recent Assured Guaranty Ltd. Financial Supplement,
which may be found at Assuredguaranty.com/agldata.

Any forward-looking statements made in this press release reflect
Assured Guaranty’s current views with respect to future events and are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements involve risks and
uncertainties that may cause actual results to differ materially from
those set forth in these statements. These risks and uncertainties
include, but are not limited to, those resulting from Assured Guaranty's
inability to execute its strategies, including its loss mitigation and
risk remediation strategies, and negative developments that may impact
Assured Guaranty's liquidity and capital, and therefore its ability to
make claim payments on time and in full, including less demand for
Assured Guaranty's financial guaranty product, or adverse developments
with respect to its insured or investment portfolio, and other risks and
uncertainties that have not been identified at this time, management's
response to these factors, and other risk factors identified in Assured
Guaranty’s filings with the Securities and Exchange Commission. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which are made as of June 28, 2017. Assured Guaranty
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.